Definitions
There is 1 meaning of the phrase
Naked Option.
Naked Option - as a noun
A put or call option for which the seller or buyer has no underlying security position
Example Sentences
"He made a risky investment by buying a naked option on the stock."
"The trader lost a significant amount of money on the naked option he purchased."
"She decided to sell a naked option on the foreign currency exchange."
"The naked option strategy involves selling options without owning the underlying asset."
"Many experienced investors advise against trading naked options due to the high risk involved."
